Marie Schrul, who was ousted as chief financial officer of St. Paul Public Schools in 2022 over the protests of parents and budget watchdogs, is suing the district, alleging it retaliated against her for calling out misuses of public funds.
Ousted St. Paul schools finance chief sues district, alleging retaliation
Marie Schrul and a colleague, Curtis Mahanay, claim under the state’s whistleblower act that they were let go because they objected to misuse of funds.
The Minnesota Star Tribune
November 20, 2024 at 11:09PM
She’s joined by Curtis Mahanay, a former colleague who was let go on the same day, as plaintiffs in the whistleblower lawsuit filed Wednesday in Ramsey County District Court.
The two allege in the 54-page document that district officials repeatedly chafed at their strict adherence to spending rules, and among the chief critics was former Superintendent Joe Gothard.
“Marie, you guys are always looking for a gotcha,” Gothard is quoted as saying in a conversation about the district’s beleagured long-term facilities plan.
At the time of her dismissal, Gothard suggested Schrul was not the right person for a newly fashioned finance job. But the lawsuit alleges the position was essentially the same and that the district simply wanted a “team player.”
St. Paul schools said it does not comment on pending legal matters. But it noted its outside auditor issued a clean or unmodified assessment of fiscal year 2023 — “the most favorable audit opinion a school district can receive.”
Gothard, now the schools chief in his hometown of Madison, Wis., did not respond to a request for comment.
His administration won accolades for its handling of $319 million in COVID relief funds — helping propel him earlier this year to National Superintendent of the Year honors.
But the lawsuit finds fault with the use of some of those funds, too.
District employees who were paid to deliver school lunches to students during COVID lockdowns continued to be paid for school-lunch delivery even after in-person learning resumed and no deliveries were being made, the lawsuit states.
About $7 million in pandemic relief funds was set aside for a community partnership program, but the outside vendors chosen were allegedly paid before contracts were signed or the work completed.
“We need to pay people fast,” Jackie Turner, the district’s chief of operations, allegedly told Schrul when she raised compliance concerns.
In addition, an unspecified number of employees received gifts inconsistent with the “spirit of the funds,” the lawsuit alleges, and the district covered it up by “falsely characterizing the gifts as cleaning/disinfectant.”
Award-winning department
Schrul began her career as an accountant in the state’s second-largest district in 1998 before becoming controller in 2010 and chief financial officer in 2014.
Three months before her departure, Gothard and the school board recognized her office for having secured an award from the state Department of Education for its timely submission of audited data and accuracy in reporting.
But a review conducted after a first wave of building renovations cost tens of millions more than projected found the district needed better coordination between its facilities and finance departments.
The lawsuit argues finance officials were trying to hold the facilities department accountable.
Mahanay flagged Tom Parent, then the district’s facilities director, for continuing to spend money beyond what had been approved by the state, the lawsuit alleges, and Schrul told school board members that Parent was using funds for other purposes to cover his deficits, “digging deeper holes in other funding sources.”
Parent now serves as senior operations officer for Minneapolis Public Schools.
Also cited in the lawsuit was St. Paul’s use of $10,000 in public funds to cover the costs of food trucks serving an invite-only party attended by district leaders before the 2022-23 school year.
“Schrul didn’t object to the party in a general sense, but she made clear that the district couldn’t lawfully pay for the party using public funds,” the lawsuit states. “The district fired Schrul shortly thereafter.”
She now serves as executive director of finance for Stillwater Area Public Schools.
Schrul and Mahanay are seeking compensatory damages, including for emotional distress, and reinstatements to their old positions — or “front pay,” instead.
They are represented by J. Ashwin Madia, the attorney for former St. Paul teacher Aaron Benner, who secured a $525,000 settlement after claiming the district retaliated against him for criticizing its discipline practices.
Madia declined to make Schrul available for an interview on Wednesday.
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